Boost Your Income With Options

Selling calls against stocks you own is a low-risk strategy.

- Daren Fonda

Dividends aren't the only payments you can pocket from your stock holdings. Another way to capture cash is by selling call options against stocks you own.

Don’t turn the page just because we’ve mentioned the dreaded o word. Selling so-called covered call options isn’t particularly risky or difficult once you know the essentials. The strategy can be a great way to earn a little extra cash even if your stocks remain flat or head south. “If you’re a retiree and need monthly income, selling calls can help meet your cash-flow needs,” says Nicholas Rotello, chief investment officer of Innovest Portfolio Solutions, an investment adviser in Denver.